Does My Online Business Need Insurance?
Starting up your own online business is an
exciting endeavor with seemingly endless possibilities. As we become more
immersed in the digital age, online businesses have become an increasingly
viable means of generating income. Whether you’re starting a
product-based business or service-based business, you may have some questions
about what’s required in order for you to get your online business operating in
a profitable and safe way, like, “Do online businesses need insurance?”
The answer to that question may depend on what
kind of online business you’re starting, but business insurance
should be considered by every business owner who wants to protect their
property and profits against unforeseen events. Additionally, liability coverage can help prevent a business
owner from incurring financial losses if something related to their online
business leads to a lawsuit. Continue reading to learn more about business
insurance and whether it’s needed for your online business.
What is
Business Insurance?
Business insurance, otherwise known as commercial insurance, offers various coverages for your
business, including the business’ property and profits. Many insurance
companies offer a Comprehensive Business Owner Policy (BOP), which offers broad
coverage and is designed to protect your business from a variety of risks.
A Business Owner Policy provides Business
Property, Business Income, and Commercial General Liability coverages. By
purchasing a Comprehensive BOP, a business owner can gain protection against property damage, loss of business income, and
general liability suits, thus affording peace of mind and the opportunity to go
back to focusing on the day-to-day matters of keeping their business running
smoothly.
Does My
Home Insurance Policy Cover My Online Business?
Because online businesses are often run out of
one’s home, some may assume that an online business is automatically covered
under one’s home insurance policy, and as a result
business insurance isn’t necessary. But this is not the case; it’s important to
note that while a home insurance policy protects your home, it may not protect certain aspects of
your business within your home. In fact, your home insurance may even exclude
business activities and business property.
Professional equipment, products and
inventory, internal files, and customer data are a few examples of things in an
online business that may not be covered by a home insurance policy.
Additionally, if something were to happen to your home that prevents your
business from operating, the income you stand to lose by remaining closed
would not be covered by your home insurance.
Why
Should I Insure an Online Business?
Business insurance offers a safety net for
your business against certain situations that can negatively impact your bottom
line or prevent your business from operating. Usually the purpose of running an
online business is to turn a profit, and while you may be looking for ways to cut expenses to help serve that mission,
purchasing business insurance is an excellent way to protect your business
against events that could otherwise be detrimental to its financial success.
Among other things, business insurance can
offer coverage for…
• Property
and inventory damages
• Data breaches
• General
liability suits
• Loss
of business income
Without the right kind of coverage, an
unforeseen event can turn a profitable online business into a money pit. There
can be no way to know when an event will occur, be it a power outage, cyber threat, house fire, or otherwise, but purchasing
business insurance can give you the peace of mind that your business is covered
for if or when it does. Click below to contact an agent and discuss coverage
options for your online business today!
